How to Set Monthly Budgeting Goals and Stick to Them

Have there been times in the past when you created a monthly budget but had trouble sticking to it? Monthly budgeting goals can be extremely helpful in meeting your financial responsibilities and achieving your larger goals—but they only work if you stay consistent. Read on to learn about how to set monthly budgeting goals and stick to them.

Start With a Thorough Review of Income and Expenses

Most of us have a general idea of how much we bring in and how much we spend on bills. However, having only a general idea of our income and expenses is often the first barrier. Without an exact understanding of all of our income sources, expenses and spending habits, it’s difficult to set monthly budgeting goals that we can stick to.

Start by gathering your most recent pay stubs and bills. Calculate how much you bring in total each month and how much of that goes toward bills. Account for all fixed expenses, like rent, insurance and car payments, and bills that fluctuate, like utilities, gas and groceries. This is also the time to assess your discretionary spending. Ask yourself questions like:

• How much am I spending on entertainment and dining?
• How much am I saving?
• Do I often make impulsive purchases?
• Do I have extra money going to unnecessary places?

Having a clear, up-to-date picture of your financial circumstances is the first step in creating an effective monthly budget.

Be Specific When Setting Goals

Once the necessities are taken care of, you should have an idea of where your leftover money has been going versus where you want it to go. This is the time to get specific. Instead of setting a goal to save money every month, specify an amount. Instead of saying you want to spend less on dining out, specify a percentage. For example, you could say, “I want to save $100 every month and spend half the amount of money I’m currently spending on dining out.” Being specific helps you set measurable, attainable goals—ones that you can stick to.

Figure Out Your Priorities

A huge part of setting monthly budgeting goals is figuring out what your priorities are. For some, it may be to build an emergency fund, while for others, it may be to pay down debt. Maybe you’d like to save up to make a large purchase or go on vacation, or maybe it’s time to start saving for your child’s college education. Perhaps you simply want to make smarter decisions about your money and be less wasteful. Whatever your priorities are, take them into consideration when setting monthly budgeting goals.

Break Down Large Goals into Smaller Steps

One of the hardest things about our monthly budgeting goals is actually achieving them. Often, they feel daunting. This can cause us to get discouraged and find ourselves falling into our old habits. That’s why breaking larger goals down into smaller, more manageable steps is key. For example, if your goal is to save $100 every month, break that down into weekly transfers of $25. Or if your monthly goal is to reduce the amount you spend on dining out, plan to dine out one less time per week. Breaking goals down makes them feel much more achievable. 

Keep Flexibility in Mind

Remember, life happens, and unexpected events pop up. Keep this in mind when setting monthly budgeting goals. Leave room for emergencies or unexpected, one-off expenses. That way, your plan doesn’t fall apart when something comes up. Surprises can throw us off course, and it can be difficult to get back on track when this happens. If you plan for it in advance, you can help yourself stick to your goals no matter what life throws your way.

Use Budgeting Tools to Track Your Progress

It’s one thing to set monthly budgeting goals, but it’s another to keep yourself accountable. There are plenty of online budgeting tools and apps out there to help you track your progress. If you’re more of a pen-and-paper type of person, don’t be afraid to track everything manually in a notebook! The important thing isn’t the tools you use to track; it’s that you’re consistent in monitoring your progress. This keeps you accountable and helps you make adjustments if you notice things aren’t going as planned.

Give Yourself a Pat on the Back

Perhaps the most important thing to do when setting monthly budgeting goals is to celebrate the small victories along the way. Give yourself some credit for the small milestones you hit. Every time you transfer to your savings account or eat at home is cause for celebration. Motivation is everything when it comes to achieving your goals. If you’re too hard on yourself or never give yourself recognition, it may become difficult to stay focused on your goals. Don’t be afraid to give yourself a well-deserved pat on the back!

Using these strategies, you’ll be well on your way to setting and achieving your monthly budgeting goals. Pronto Power, a Texas power company, offers prepaid power plans to help families save money on their energy bills, which they can then allocate to their other priorities. Call us at (844) 621-2852 or contact us online to take control of your budget today!